Author: FX
Danske Research discusses EUR/USD outlook and maintains a structural bearish bias over the coming months.”We note that in tandem with EUR/USD loosing steam Eurozone equities are beginning to underperform US peers – and also more generally that value is beginning to underperform growth. In our view, this is an important development to follow when it comes to the direction of EUR/USD. As explained over the last weeks we still have a strategic bearish bias for EUR/USD even if our tactical conviction is less clear,” Danske notes. “To the extent central banks next week (primarily Fed, ECB) deliver a fairly firm…
The meme stocks are running again today despite a choppy market, including shares of Lucid Motors now up 56%.Money is piling into beaten-up tech stocks at an incredible pace as the market bets on inflation coming back down to target. With that, the VIX is down 3% today to the lowest since last January.VIX daily Source link
© Reuters. Musk, McDonald’s and DOGE – The Saga Continues A tweet by McDonald’s on January 26th, 2023, sparked reactions from Elon Musk and the (DOGE) community about their illusive collaboration. The Twitter conversation stemming from McDonald’s original tweet accumulated 8.1M views in less than 24 hours. Elon Musk reaffirmed that he would “100%” still appear in a McDonald’s ad if the fast food company implements DOGE payments. On January 26th, 2023, the official Twitter account of the American multinational fast-food chain McDonald’s published a simple tweet that sparked a reaction from Elon Musk and the Dogecoin (DOGE) community After…
One-month trimmed mean annualized +2.3% vs +3.0% prior12-month PCE trimmed mean +4.4% vs +5.0% priorThese one-month numbers have come down from 6.0% in August to near the Fed’s target. It will take more numbers like this with the help of lapping soft comps to get the Fed where it wants to be. Source link
USD/JPY remains downtrend but is about to form a bullish harami candle pattern, suggesting an upward correction on the cards. USD/JPY Price Analysis: Once it clears 129.50, it could rally towards 131.57 before turning neutral. USD/JPY slumps in a choppy New York trading session and edges beneath 130.00 after a round of US economic data, suggesting the US Federal Reserve (Fed) could begin to hike rates in 25 bps sizes. Therefore, the Japanese Yen (JPY) strengthened, so the USD/JPY is down 0.24%. At the time of writing, the USD/JPY is trading at 129.92. USD/JPY Price Analysis: Technical outlook The USD/JPY…
GBP/USD snaps two days of gains and tumbled below Thursday’s close of 1.2406, slumping toward 1.2370, amidst a choppy trading session. Inflation data revealed in the United States (US) augmented the likelihood of small-size rate hikes by the US Federal Reserve. Therefore, the GBP/USD is trading at 1.2372, below its opening price by 0.27%. Read More… The GBP/USD pair continues with its struggle to find acceptance above the 1.2400 mark and comes under some selling pressure on the last day of the week. The pair remains on the defensive through the first half of the European session and is currently placed around the…
TD Research discusses its expectations for next week’s FOMC policy meeting.”We expect a 25bp rate hike at next week’s FOMC meeting taking the Fed funds target range to 4.50%-4.75%, and raising the IOER and RRP rates to 4.65% and 4.55%, respectively. The move would be the second consecutive downshift in hiking pace by the Fed. Despite this, we expect that post-meeting communication to emphasize that the Fed is not done yet in terms of further tightening of its policy stance, and signal that more rate hikes are still in the pipeline,” TD notes. “FX: Barring a 50bp hike or a…
GBP/USD is set to finish Friday with losses of at least 0.20%. United States inflation continues to wane but remains twice elevated of Fed’s target. GBP/USD Price Analysis: To remain sideways ahead of the Fed and BoE monetary policy decisions. GBP/USD snaps two days of gains and tumbled below Thursday’s close of 1.2406, slumping toward 1.2370, amidst a choppy trading session. Inflation data revealed in the United States (US) augmented the likelihood of small-size rate hikes by the US Federal Reserve. Therefore, the GBP/USD is trading at 1.2372, below its opening price by 0.27%. US core PCE presses lower and…
On the day:Stoxx 600 +0.2%German Dax flatFrance’s CAC -0.1%UK’s FTSE 100 flatSpain’s Ibex +0.2%Italy’s FTSE MIB +0.8%On the week:Stoxx 600 +0.6%German Dax +0.7%France’s CAC +1.3%UK’s FTSE 100 -0.2%Spain’s Ibex +1.5%Italy’s FTSE MIB +2.5%It’s been an incredible run to start the year but the momentum has stalled in the past two weeks and now the market is watching to see what Lagarde does.Stoxx 600 weekly chart Source link
Analysts at MUFG Bank see the USD/ZAR moving to the downside over the next days. They point out the South African Rand has failed to strengthen alongside other Emerging Market currencies on the back of building optimism over a dovish Federal Reserve policy pivot and China’s economy reopening more fully this year. Key quotes: “The ZAR has underperformed recently after USD/ZAR failed to break below support from the 200-day moving average in the middle of this month. It leaves the ZAR as one of the worst performing (-1.0% vs. USD) EM currencies so far this year.” “Investor sentiment towards the…